The restructuring was effected through a new Management Services Agreement
("MSA") among PST, iASPEC and iASPEC's shareholders, which replaces the prior
Business Turnkey Agreement, effective as of July 1, 2007 . The MSA includes
the following key provisions:

The restructuring also involves the parties' entry into the Purchase
Option Agreement, effective as of July 1, 2007 , which grants PST an exclusive
option to acquire, subject to the laws of China , up to 100% of iASPEC's shares
from the iASPEC shareholders, or all of the assets held by iASPEC. As a
result of the restructuring, iASPEC is now considered to be the Companys's
Variable Interest Entity and ASPEC's results of operations will be
consolidated with the Company's financial data, pursuant to FASB
Interpretation No.46(R).

The Company believes that the modifications to its corporate structure and
accounting treatment will result in greater transparency for investors and
will improve China Public Security's ability to exert greater control over the
business and affairs of iASPEC, thus improving confidence in the outlook for
the Company's business. At the same time, the new structure preserves the
independence of iASPEC under Chinese law to comply with the requirements of
licenses and contracts to perform sensitive work in the Public Security sector
and puts in place strict provisions to insure that all sensitive information
is safeguarded.

"We believe the restructuring of our commercial arrangement with iASPEC
will provide investors with increased transparency and will make our business
model easier for analysts to understand," said Mr. Jiang Huai Lin , China
Public Security's Chairman and CEO. "We believe that the revised structure
will enhance our corporate governance and inspire investor confidence, while
enabling the Company to continue to grow our share in the market for providing
IT solutions for public security and GIS related projects in the China ."

About China Public Security Technology, Inc.

Through its wholly-owned Chinese subsidiary, CPST is focused on the
development and implementation of large scale, high-tech public security and
Geographic Information System (GIS) related projects. The Company provides a
broad portfolio of fully-integrated solutions and services, including public
security information technology (First Responder Coordination Platform,
Intelligent Border Control and Intelligent Security Surveillance), Geographic
Information System (Police-use GIS and Civil-use GIS), and e-Government
Platform services, software sales and maintenance as well. CPST currently has
the licenses to 16 registered and copyrighted software applications in China ,
through its exclusive business turnkey agreement with Shenzhen iASPEC Software
Engineering Company Limited (iASPEC). Under this agreement the Company acts
as iASPEC's exclusive subcontractor to all its customers. To learn more about
the Company, please visit the corporate website at http://www.chinacpby.com .

Safe Harbor Statement

This press release may contain certain "forward-looking statements"
relating to the business of China Public Security Technology, Inc., and its
subsidiary companies. All statements, other than statements of historical
fact included herein are "forward-looking statements," including statements
regarding the ability of the Company to exert greater control over the
business and affairs of iASPEC, the effect of the restructuring on analysts,
and the ability of the Company to expand its market share or otherwise achieve
its commercial objectives, the business strategy, plans and objectives of the
Company and its subsidiaries and any other statements of non-historical
information. These forward-looking statements are often identified by the use
of forward-looking terminology such as "believes," "expects" or similar
expressions, involve known and unknown risks and uncertainties. Although the
Company believes that the expectations reflected in these forward-looking
statements are reasonable, they do involve assumptions, risks and
uncertainties, and these expectations may prove to be incorrect. You should
not place undue reliance on these forward-looking statements, which speak only
as of the date of this press release. The Company's actual results could
differ materially from those anticipated in these forward-looking statements
as a result of a variety of factors, including those discussed in the
Company's periodic reports that are filed with the Securities and Exchange
Commission and available on its website (http://www.sec.gov). All forward-
looking statements attributable to the Company or persons acting on its behalf
are expressly qualified in their entirety by these factors. Other than as
required under the securities laws, the Company does not assume a duty to
update these forward-looking statements.